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Panama Cancels $298M Loan Because They Are Upset

Panama cancels $298 million loan to French company as retaliation of recent comments of French Budget Minister, who claimed Panama has been uncooperative in the fight against tax evasion.

Photo Credit: La Prensa

Original Article Text From La Prensa, Panama via Google Translate:

PARIS, France. (EFE) .- The French Government said that will take Panama from the list of non cooperative tax after the agreement on exchange of information between the two countries is ratified by Parliament Gaul.

This was said the French foreign ministry, which said it will “examine” the statements made by the Panamanian authorities following protests from the French Minister of Budget, Valérie Pécresse.

The minister last week announced a tightening of controls against tax evasion and put to Panama as an example of non-cooperative state. Subsequently, the Panamanian Minister of Economy, Frank De Lima, ordered to withdraw the mandate to the Compagnie Française Pour Le Commerce Extérieur DAssurance (COFACE) with respect to a loan agreement of $ 297.8 million for partial funding of the works of construction of a subway line in Panama City.

Pécresse said in a speech on tax fraud, said he had asked his administration to “carefully monitor the application of retaliatory measures to non-cooperative” with “selective tax inspections.” “For example, he added, companies that pay wages in non-cooperative, such as Panama, now have to pay a withholding tax at a rate of 50%. You have to see that this obligation is respected.”

Today, the Foreign Ministry said that Gallic France “is very committed to the strengthening of economic and political relations with Panama, as illustrated by the recent visit to France President (Ricardo) Martinelli.” The interview between him and French President Nicolas Sarkozy, “allowed to note the dynamism and quality” of bilateral relations, said the Ministry Gallo.

“France has a favorable consideration of Panama’s efforts in fiscal transparency, which allowed us to sign an agreement that authorizes the exchange of tax information between our two countries,” the spokesman said French.
“Panama will leave the French list of non cooperative when that agreement has been ratified by the French